Slide 1: Second Quarter 2021 Financial and operating results
Second Quarter 2021 Financial and operating results for the period ended June 30, 2021 July 28, 2021 Unless otherwise specified, comparisons in this presentation are between 2Q20 and 2Q21. Exhibit 99.3
Slide 2: Important Legal Information
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 2 Important Legal Information Certain statements made in this presentation should be considered forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These include statements about future resu
Slide 3: | July 28, 2021
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 3
Slide 4: Quarter in Review
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 4 Quarter in Review Strong earnings; total sales exceed pre-pandemic levels Strong Operational Performance • Operating income per share1 up 60% excl. significant items • Insurance product margin up 8% excl. significant items; favorab
Slide 5: Growth Scorecard
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 5 2019 2Q 2Q 3Q 4Q TY 1Q 2Q vs. 2Q19 vs. 2Q20 New Annualized Premiums1 Life $39.4 $47.4 $44.3 $37.1 $169.9 $53.0 $52.3 32.7% 10.3% Health 45.8 22.0 39.4 49.1 154.5 35.7 41.5 -9.4% 88.6% Total Life and Health $85.2 $69.4 $83.7 $86.2 $
Slide 6: Consumer Division Update
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 6 Consumer Division Update Second Quarter HighlightsKey Initiatives Sales momentum continuing; most metrics exceed pre-COVID levels Expand reach Maintain growth momentum Optimize distribution • Life & Health sales up 32% YoY; up 19%
Slide 7: Worksite Division Update
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 7 Worksite Division Update Second Quarter Highlights • Life & Health sales up 88% YoY • Fee revenue up 110% YoY due to DirectPath • Stable employer base and premium collection • Average client size increasing; penetration deepening •
Slide 8: Excess Capital Allocation Strategy
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 8 Excess Capital Allocation Strategy Disciplined and opportunistic approach to maximize shareholder value Organic investments to sustain and grow the core businesses • Agent pilots, technology-driven customer experience enhancements
Slide 9: Financial Highlights
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 9 $0.55 $0.66 $0.57 $0.58 $0.43 $0.69 Financial Highlights Operating EPS up 20%; continued favorable COVID impact; strong NII Earnings ResultsSecond Quarter 2021 Net operating income1 $79.4 $89.1 Net income $82.0 $78.0 Weighted avera
Slide 10: Insurance Product Margin
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 10 Highlights1 $72.3 $45.3 $52.0 $57.9 $66.0 $41.7 $47.3 $41.6 $27.1 $39.7 $95.5 $152.2 $125.2 $124.7 $120.9 Insurance Product Margin (dollars in millions) Continued benefit from deferral of care; stable underlying margins Insurance
Slide 11: Investment Results
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 11 $- $100.0 $200.0 $300.0 $400.0 2Q 2020 2Q 2021 Investment Income Not Allocated to Product Lines $- $100.0 $200.0 $300.0 $400.0 2Q 2020 2Q 2021 Total Net Investment Income1 Annuity Health Life Not Allocated $- $100.0 $200.0 $300.0
Slide 12: Portfolio Composition
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 12 IG Corporates, 52.3% Non-Agency RMBS, 7.2% Mortgage Loans, 4.9% HY Corporates, 2.9% CMBS, 7.9% Municipals, 10.1% ABS, 3.7% Govts/Agency, 1.2% CLO, 1.7% Equities, 0.5% Other Invested Assets, 2.3% Alternatives, 2.2% Policy Loans, 0.
Slide 13: Cash Flow Profile
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 13 Cash Flow Profile Strong free cash flow generation and conversion (dollars in millions) 1 A non-GAAP measure. See the Appendix for a reconciliation to the corresponding GAAP measure. 2 Cash flows exclude capital contributions to i
Slide 14: Capital and Liquidity Overview
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 14 Capital and Liquidity Overview 1 The ratio of the combined capital of the insurance companies to the minimum amount of capital appropriate to support the overall business operations, as determined based on the methodology develope
Slide 15: Outlook
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 15 Outlook Sales Continued positive momentum Earnings Free Cash Flow / Excess Capital As COVID uncertainty diminishes, manage capital and liquidity closer to target levels, reducing excess capital over time COVID-related • Stil
Slide 16: Delivering On Our Commitments
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 16 Delivering On Our Commitments Turnaround / De-risking Pivot to Growth Optimize Long-term Value Pre 2017 2017 - 2019 2020 - 2021 Post COVID • Reinsured life block (2009) • Recapitalized company (2012) • Initiated dividend (2012) •
Slide 17: Investment Highlights
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 17 Well-positioned in underserved senior middle-income market Highly differentiated business model Favorable demographic tailwinds Sustainable growth initiatives in place Strong balance sheet; robust free cash flow generation Investm
Slide 18: Questions and Answers
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 18 Questions and Answers
Slide 19: Appendix 1: Quarter in Review
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 19 Appendix 1: Quarter in Review Strong Operational Performance • Broker-Dealer/Registered Investment Advisor Slide 20 • Exclusive Agent Counts Slide 21 Building on Strong Track Record of Execution • New Money Rate Walk Slide 22 • Ne
Slide 20: Broker-Dealer/Registered Investment Advisor
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 20 Broker-Dealer/Registered Investment Advisor 1 Client assets include cash and securities in brokerage, broker/dealer customer account assets custodied directly at fund companies and insurance carriers, and assets under management i
Slide 21: Exclusive Agent Counts
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 21 % Change Consumer 2Q 3Q 4Q 1Q 2Q Y/Y Producing Field Agents1,3 4,066 4,448 4,539 4,389 4,360 7.2% Producing Tele-Sales Agents1,3 237 239 257 258 247 4.2% Total Producing Agents1,3 4,303 4,687 4,796 4,647 4,607 7.1% Registered Agen
Slide 22: New Money Rate Walk
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 22 New Money Rate Walk Lower sequentially; higher average rates offset by tighter spreads, up-in-quality bias, end of quarter rate environment
Slide 23: New Money Summary
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 23 New Money Summary Continued up-in-quality bias during second quarter 97% Investment Grade Allocation Second Quarter Investments IG Corporates 70% Structured Securities 11% Municipals 12% HY Corporates 3% CML 3% Direct investment 0
Slide 24: Long-Term Care Insurance
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 24 New sales (~$25 million annually) focused on short duration products – 98% of new sales for policies with 2 years or less in benefits – Average benefit period of 11 months – New business 25% reinsured since 2008 Reserve assump
Slide 25: Tax Asset Summary
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 25 Non-life NOLs $291 DTAs related to tax strategy $131 Value of NOLs and deferred tax assets (DTAs) related to tax strategy Details • Total estimated economic value of tax assets related to our NOLs and tax strategy of approximately
Slide 26: Appendix 2: Financial Exhibits
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 26 Appendix 2: Financial Exhibits • Non-GAAP Financial Measures Slides 27-44
Slide 27: 2Q21 Significant Items
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 27 The table below summarizes the financial impact of significant items on our 2Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 2Q21 Signif
Slide 28: 1Q21 Significant Items
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 28 The table below summarizes the financial impact of significant items on our 1Q21 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 1Q21 Signif
Slide 29: 4Q20 Significant Items
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 29 The table below summarizes the financial impact of significant items on our 4Q20 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 4Q20 Signif
Slide 30: 2Q20 Significant Items
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 30 The table below summarizes the financial impact of significant items on our 2Q20 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 2Q20 Signif
Slide 31: 2Q20 Significant Items (Continued)
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 31 2Q20 Significant Items (Continued from the previous page) (1) Given our expectation that interest rates will remain low for the long-term, we performed an actuarial unlocking exercise in the second quarter of 2020 to reflect our a
Slide 32: 4Q19 Significant Items
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 32 The table below summarizes the financial impact of significant items on our 4Q19 net operating income. Management believes that identifying the impact of these items enhances the understanding of our operating results. 4Q19 Signif
Slide 33: Quarterly Earnings
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 33 Quarterly Earnings (dollars in millions) * Management believes that an analysis of Net income applicable to common stock before: (i) net realized investment gains or losses from sales, impairments and the change in allowance for c
Slide 34: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 34 Information Related to Certain Non-GAAP Financial Measures The following provides additional information regarding certain non-GAAP measures used in this presentation. A non-GAAP measure is a numerical measure of a company’s perfo
Slide 35: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 35 Information Related to Certain Non-GAAP Financial Measures A reconciliation of net income (loss) applicable to common stock to net operating income (and related per-share amounts) is as follows: (dollars in millions, except per-sh
Slide 36: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 36 Information Related to Certain Non-GAAP Financial Measures A reconciliation of operating income and shares used to calculate basic and diluted operating earnings per share is as follows: (dollars in millions, except per-share amou
Slide 37: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 37 Information Related to Certain Non-GAAP Financial Measures Book value per diluted share Book value per diluted share reflects the potential dilution that could occur if outstanding stock options were exercised, restricted stock an
Slide 38: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 38 Information Related to Certain Non-GAAP Financial Measures Operating return measures Management believes that an analysis of net income applicable to common stock before net realized investment gains or losses from sales, impairme
Slide 39: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 39 Information Related to Certain Non-GAAP Financial Measures The calculations of: (i) operating return on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial mea
Slide 40: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 40 Information Related to Certain Non-GAAP Financial Measures The following summarizes: (i) operating earnings; (ii) significant items; (iii) operating earnings, excluding significant items; and (iv) net income (loss): (dollars in mi
Slide 41: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 41 Information Related to Certain Non-GAAP Financial Measures The calculations of: (i) operating return on equity, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial mea
Slide 42: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 42 Information Related to Certain Non-GAAP Financial Measures A reconciliation of consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to co
Slide 43: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 43 Information Related to Certain Non-GAAP Financial Measures A reconciliation of consolidated capital, excluding accumulated other comprehensive income (loss) and net operating loss carryforwards (a non-GAAP financial measure) to co
Slide 44: Information Related to Certain Non-GAAP Financial Measures
CNO Financial Group | Second Quarter 2021 Earnings | July 28, 2021 44 Information Related to Certain Non-GAAP Financial Measures Debt to capital ratio, excluding accumulated other comprehensive income (loss) The debt to capital ratio, excluding accumulated other comprehensive income (loss), differs